Slow progress in implementing cooperative fund misappropriation report

Kathmandu, October 4 — The Council of Ministers decided on September 19 to implement the report of the Parliamentary Investigation Special Committee regarding the misuse of savings by cooperative institutions. Accordingly, police have already arrested former DIG Chhabilal Joshi and Lila Pachhai for allegedly misappropriating funds from the Surya Darshan Savings and Credit Cooperative in Pokhara. Currently, the District Police Office in Kaski is investigating them for organized crime, fraud, and money laundering.

The Parliamentary Investigation Committee concluded that 32-year-old Pachhai, from Musikot Municipality-4 in Gulmi, misappropriated over 30 million rupees. She was closely associated with the founding chairman of the Surya Darshan Cooperative, Giteendra Babu (GB) Rai.

According to Home Ministry spokesperson (Joint Secretary) Rishiram Tiwari, the report from the Parliamentary Investigation Committee has already been sent to the police for implementation. He stated, “The police are conducting the necessary investigation.”

The investigation committee’s findings indicate that funds from cooperatives such as Surya Darshan and Supreme have been misappropriated into the Gorkha Media Network. The committee has recommended that action be taken against those involved, including Rashtriya Swotantra Party (RSP) president Rabi Lamichhane, GB Rai, Kumar Ramtel, and former DIG Chhabilal Joshi, according to the prevailing laws. Following the committee's recommendation, the police have also begun investigations into the Supreme Savings Cooperative in Butwal, the Sahara Chitwan Multipurpose Cooperative in Chitwan, and the Swarnalakshmi Savings and Credit Cooperative in Kathmandu. A senior officer at the police headquarters stated, “In addition to Surya Darshan, investigations are also ongoing regarding three other cooperatives that transferred funds to the Gorkha Media inappropriately.”

Lamichhane and Rai are accused of unauthorizedly transferring cooperative funds into accounts at the Gorkha Media Network. The investigation committee's report notes that a total of 655.4 million rupees has been misappropriated from five cooperatives into the Gorkha Media Network. GB Rai, Rabi Lamichhane, and Joshi were business partners in the Surya Darshan Cooperative.

Initial police investigations reveal that Lamichhane secured a loan of 10 million rupees from the Supreme Cooperative by designating himself as a debtor, which was then transferred to the Gorkha Media Network’s account. Preliminary findings indicate that 250 million rupees from depositors have been lost at the Sahara Chitwan Multipurpose Cooperative in Chitwan.

Loan of 20 million rupees transferred from Supreme to Lamichhane

The police had previously submitted an investigation report regarding the Supreme Savings and Credit Cooperative in Butwal. The first phase of the investigation found that a loan of 20 million rupees had been issued in the name of Lamichhane, the former Deputy Prime Minister and Home Minister, from the Supreme Savings Cooperative operating at the Rajmarga Chauraha in Butwal Sub-Metropolitan City-9. Lamichhane took out this loan on April 1, 2021. According to the charge sheet filed at the Rupandehi District Court, the amount was deposited into the Global IME Bank account of the Gorkha Media Network.

From the first phase of the investigation, 28 individuals, including GB Rai from Okhaldhunga’s Sunkoshi Rural Municipality and former Vice President Nanda Bahadur Pun's son Dipesh Kumar Pun, were named as defendants. However, Lamichhane, who was the Home Minister at the time, was not named as a defendant. Following the investigation report, a second phase of investigation into the Supreme has also been initiated, according to a high police source. These police officials state, “We are looking into how the loan was issued from the Supreme.”

The voucher for the loan issued in Lamichhane's name from the Supreme was approved by Sagar KC. Currently, 30-year-old Sagar KC, from Malika Rural Municipality-8 in Gulmi, is absconding. Police officers involved in the investigation say that Lamichhane can only be implicated in the investigation of the Supreme if Sagar and GB Rai provide testimony against him. The charge sheet mentions that Sagar KC approved the voucher and that Roshani Gurung deposited the funds into the account in the name of Gorkha Media Network.

**Slow Progress from Cooperatives and Finance Ministries**

The Council of Ministers has also directed the Ministry of Land Management, Cooperatives, and Poverty Alleviation, as well as the Ministry of Finance, to implement the report. However, both ministries are slow in their implementation processes.

Ganesh Prasad Bhatt, spokesperson (Joint Secretary) for the Ministry of Land Management, Cooperatives, and Poverty Alleviation, stated that the cooperative branch might be working on it. He said, “The cooperative branch may be looking into it.”

The Ministry of Finance has also made no progress in implementation. Mahesh Bhattarai, spokesperson (Joint Secretary) for the Ministry of Finance, indicated that the officials overseeing the financial sector might be aware of the situation.